Mario Gabelli

Mario Gabelli

Last Update: 05-06-2016

Number of Stocks: 798
Number of New Stocks: 37

Total Value: $15,162 Mil
Q/Q Turnover: 4%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Mario Gabelli Watch

  • Companies Fall to 5-Year Lows

    According to GuruFocus' list of five-year lows, these guru stocks have reached their five-year lows: Guess? Inc. (NYSE:GES), Quality Systems Inc. (NASDAQ:QSII), RPX Corp. (NASDAQ:RPXC) and Ruby Tuesday Inc. (NYSE:RT).


    Guess? reaches $15.71

      


  • Gabelli & Company Analyst Discusses Nordson Corp

    Matthew Trusz, research analyst with Gabelli & Company, discusses a company in which he recently initiated coverage, Nordson Corp. (NASDAQ:NDSN). Trusz expects the company to generate over $5 billion in free cash flow and return about half of it to shareholders in the next five years. He also see EPS growth in the near future. He has a "hold" rating on the stock until its price becomes more attractive. Hear more in the video below.


      


  • Gold Update from Gabelli & Company



  • In Spite of Less Revenue Rite Aid Still Has Growth Potential

    Rite Aid (NYSE:RAD) is the third-largest drugstore chain in the U.S. with stores in 4,570 locations. It sells both prescription and nonprescription drugs as well as other retail merchandise. Currently the stock is trading at a P/E multiple of 57.33x; while comparing it with peers on PEG ratio it is a rather cheap stock to buy, and it has upside potential of 13.65% from the market price of $7.74.


      


  • Stocks Mario Gabelli Has Bought for 2 Quarters

    Mario Gabelli (Trades, Portfolio) is the founder, chairman and CEO of Gabelli Asset Management Company Investors (GAMCO Investors), a $30 billion global investment firm headquartered in Rye, New York. In both fourth quarter 2015 and first quarter 2016 the guru bought shares in the following stocks:


    California Resources Corp. (CRC)

      


  • Insider Buys of More Than $100,000: Opko Health

    Opko Health Inc. (NASDAQ:OPK) CEO, Chairman and 10% owner Phillip Frost M.D. et al bought 16,000 shares on June 14 at a price of $9.01 per share. The total transaction amount was $144,160.


    Opko Health has a market cap of $5.04 billion; its shares were traded around $9.20 with a P/E ratio of 65.69 and P/S ratio of 6.26. Opko Health had an annual average earnings growth of 11.00% over the past 10 years.

      


  • Mario Gabelli Comments on Westar Energy Inc.

    Westar Energy Inc. (1.8%) (NYSE:WR) (WR – $49.61 – NYSE) is an electric utility serving 700,000 customers in central and northeastern Kansas. WR is well positioned to grow its earnings, given a constructive regulatory environment that allows for annual rate adjustments outside of a general rate case to recognize environmental and transmission investment. The company targets long-term EPS growth of 4%-6% off of its 2015 normalized earnings of $2.21 per share. In late 2015, WR implemented a $78 million rate increase based on a 53.45% equity ratio and an undisclosed ROE level (~9.35% inferred off of a 10.926% allowed pre-tax return). WR’s five-year capital expenditure program totals $4.2 billion, including $1.1 billion in 2016, $794 million in 2017, $751 million in 2018, $706 million in 2019, and $810 million in 2020. Management prefers to own the new capacity and believes it can lead to lower customer rates as well as Clean Power Plan compliance. A significant portion of the capital investment (transmission and environmental) is eligible for annual riders, which minimizes regulatory lag. Over the next five years, WR plans to invest over $1.2 billion on transmission rate base, or roughly $250 million per year. WR’s attractive wind resource, constructive regulation and transmission geography, make it an attractive takeover candidate.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Utilities Fund first quarter 2016 commentary.   


  • Mario Gabelli Comments on Severn Trent PLC

    Severn Trent PLC (0.3%) (SVT) (SVT – $31.21/2,170 p – London Stock Exchange) is an international provider of water and wastewater services. Severn Trent Water, the UK based utility, provides water to eight million people and wastewater services to nine million people in the Midlands and Mid-Wales. In January 2015, Severn Trent accepted the Final Determination from OFWAT, the UK water regulator, regarding the utility’s five year investment and rate plan for 2015-2020. The plan will likely allow SVT to continue to provide steady and modestly growing returns. Additionally, as one of the UK’s premier water and wastewater providers, Severn Trent is well positioned to provide duly needed expertise and infrastructure investment opportunities in less developed regions across the world. Severn Trent Services, the non-regulated water and waste water service division of the company, which focuses on water purification projects and operating plants and systems for municipalities, has a growing presence in Europe, the Middle East, and Asia. Strong earnings and cash flow profile combined with water and wastewater infrastructure expertise make SVT an attractive takeover candidate.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Utilities Fund first quarter 2016 commentary.   


  • Mario Gabelli Comments on Southwest Gas Corp.

    Southwest Gas Corp. (3.1%) (NYSE:SWX) (SWX – $65.85 – NYSE) is a natural gas distribution utility serving 1.9 million customers in geographically diverse portions of Arizona (~1.0 million, or 53%), Nevada (~700,000, or 37%), and California (~185,000, or 10%). From 2008 to 2010, customer growth slowed, due to the overall slowdown in the new housing market and the increase in idle/vacant homes resulting from foreclosures and challenging economic conditions. Over the past several years, customer growth has improved, and over the long term, we expect that the service area will return to higher growth rates as the favorable regional climate and lower housing prices attract customers to inhabit vacant homes. SWX also owns Centuri Construction Group, a full service underground piping contractor that provides trenching and installation, replacement, and maintenance services for energy distribution systems. The pipeline construction business is growing strongly, given the industry’s focus on safety related pipeline replacement programs and achieved the $1 billion revenue milestone. The 2014 acquisition of Link-Line Group’s pipeline construction business expanded the scope and scale of the business, allowing the potential for some type of financial engineering. We consider SWX to be a high quality gas utility with a focused, low risk strategy and solid earnings outlook, driven by recent and future rate increases, expanded infrastructure tracking mechanisms, customer growth, and cost controls.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Utilities Fund first quarter 2016 commentary.   


  • Mario Gabelli Comments on PNM Resources Inc.

    PNM Resources Inc. (2.6%) (NYSE:PNM) (PNM – $33.72 – NYSE) is a public utility holding company headquartered in Albuquerque, New Mexico. Regulated electric utility subsidiaries include Public Service Company of New Mexico (PSNM) and Texas-New Mexico Power Company (TNMP). PNM expects rate base growth of 5%-7% per annum at both PSNM and TNMP. PNM’s 2016-2019 capital plan totals $1.7 billion, including $547 million in 2016, $425 million in 2017, $398 million in 2018 (excludes $165 million for PV 3) and $352 million in 2019. In late 2015, PNM received final approval of its major environmental plan and ownership changes for the San Juan coal units. Additionally, PSNM refiled an important New Mexico rate case on August 27, 2015. It requested a $123.5 million annual revenue increase, based on a 10.5% allowed ROE using a rate base of $2.5 billion, for the test year October 2015-September 2016. PSNM expects a NMPRC rate order in the third quarter of 2016. In December 2015, the NMPRC agreed to clarify future test year standards begin 13 months after a rate case is filed. We expect BART and other investment to be recognized in the 2018 future test year rate order. We expect the use of a forward-looking test year to provide PSNM greater opportunity to earn its allowed ROE. Assuming fair regulatory treatment, PNM targets 7%-9% annual earnings growth, which includes 2016 earnings guidance of $1.55-$1.76 per share, and 2017 earnings power of $1.94-$2.01 per share.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Utilities Fund first quarter 2016 commentary.   


  • Mario Gabelli Comments on NextEra Energy Inc.

    NextEra Energy Inc. (NYSE:NEE) (4.2%) (NEE – $118.34 – NYSE) is the holding company for Florida Power & Light (FP&L), the largest electric utility in Florida, and NextEra Energy Resources (NER), a leading wholesale renewables operator. We regard NEE as one of the better positioned electric companies to grow earnings and dividends over the next several years. FP&L operates one of the premier utility franchises in the nation, with favorable long term demographics and above average rate base growth potential, due to the power plant rate adjustments, flexible amortization, and other regulatory mechanisms. FP&L’s four year rate plan (2013-2016), premised on an allowed ROE of 10.5% (+/-100-basis points), expires at year-end 2016 and has filed for another constructive multi-year plan. NEE also agreed to purchase Hawaiian Electric Industries (HE) on December 3, 2014, while spinning off American Savings Bank to shareholders. NEE will finance the deal with 0.2413 shares of NEE per share of HE and the assumption of tax liabilities related to the spin off. Additionally, NER owns and operates the nation’s largest renewable power portfolio, with a significant pipeline of future growth opportunities. In mid-2014, NEE IPO’d 20% of a new publicly traded yieldco (NextEra Energy Partners-NEP (less than 0.1%)), to help drive non-regulated renewable generation growth. Many of these projects and opportunities are likely to be “dropped down” into NEP. In addition, NEE entered into a Joint Venture with Spectra Energy on a 465 mile, $3 billion (NEE to fund $1 billion) intrastate pipeline from Alabama through Georgia to southern Florida. The project includes an associated $550 million 126 mile expansion to FPL’s Martin Energy Center.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Utilities Fund first quarter 2016 commentary.   


  • Mario Gabelli Comments on National Fuel Gas Co.

    National Fuel Gas Co. (NYSE:NFG) (4.9%) (NFG – $50.05 – NYSE) is a diversified natural gas company. NFG owns a regulated gas utility serving the region around Buffalo, New York, gas pipelines that move gas between the Midwest and Canada and from the Marcellus to the Northeast, gathering and processing systems, and an oil and gas exploration and production business. NFG’s regulated utility and pipeline businesses, as well as its California oil production business, provide stable earnings and cash flows to support the dividend, while the natural gas production business offers significant upside potential. NFG’s ownership of 800,000 net acres in Pennsylvania, including 780,000 acres in the Marcellus Shale, holds enormous natural gas reserve potential. On February 4, 2016, NFG took near-term strategic actions to adjust to the ongoing low natural gas price environment in the Marcellus: (1) lowered the 2016 capital budget (2) delayed the Northern Access 2016 pipeline expansion by roughly one year with new in-service target date of November 2017, and (3) reduced its drilling program to operate one rig in 2016 and 2017. NFG’s actions highlight its unique asset mix and flexibility to endure the current depressed price environment. The company continues to lower well costs and extract operational efficiencies, resulting in lower required break-even realizations in the WDA. We continue to expect above average long term earnings and cash flow growth from rapidly growing gas production and strategically located pipeline expansion. The company has increased its dividend for over forty consecutive years.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Utilities Fund first quarter 2016 commentary.   


  • Mario Gabelli Comments on ITC Holdings Co.

    ITC Holdings Co. (0.2%) (NYSE:ITC) (ITC – $43.57 – NYSE) On February 9, ITC agreed to be acquired by Canadian utility Fortis (FTS-C$41.38-TSE) for $11.3 billion (includes the assumption of $4.4 billion of ITC debt), or $44.90 per share, in cash and stock. The transaction price consists of $22.57 per share in cash and 0.752 FTS shares. The transaction price of $44.90 per share represents a 14% premium to the previous day’s close of $39.38 per share and 33% premium to the unaffected share price prior to the November 30, 2015 announcement regarding the strategic review. The $44.90 per share transaction price represents 21.4x our 2016 earnings estimate of $2.10 per share and 12.2x EV/EBITDA multiples, which are at the higher-end of recent utility takeover multiples. The companies expect the transaction to close in late 2016 pending receipt of approvals from the ITC and FTS shareholders, FERC approval, as well as IL, KS, MO, OK and WI. ITC is the nation’s only pure-play transmission company with substantial expertise in transmission operation and development. The transaction makes strategic sense for FTS given that ITC provides regulated rate base growth opportunity, increases diversification, and is accretive to earnings. Based in St Johns, NL Canada, FTS would be among the larger fifteen utilities in North America with a rate of C$28 billion (U.S. $18 billion) and plans to list on the NYSE. FTS currently serves ~2 million electric and 1.2 million gas utility customers throughout Canada, the United States and the Caribbean.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Utilities Fund first quarter 2016 commentary.   


  • Mario Gabelli Comments on Iberdrola S.A.

    Iberdrola S.A. (0.1%) (IBE) (IBE – $6.67/5.86 – Bolsas y Mercados Españoles) headquartered in Bilbao, Spain, is one of the larger global power companies with operations primarily in Spain, Portugal, the UK, U.S., Mexico and Brazil. The company owns and operates ~44,600 MW of generation, including 14,200MW of renewables, and serves over ~20 million electric and gas customers. IBE’s strategy is focused on its renewable energy and regulated businesses in countries with high ratings, such as the U.S. On December 17, 2015, UIL Holdings of New Haven, Connecticut and Iberdrola USA combined to form a separate publicly traded utility called AVANGRID. Iberdrola owns 81.5% of AVANGRID and former UIL shareholders own 18.5%. The combination includes Iberdrola USA’s utilities (New York State Electric & Gas, Rochester Gas & Electric, and Central Maine Power) and UIL’s utilities (The United Illuminating Company, The Southern Connecticut Gas Company, The Connecticut Natural Gas Corporation, and The Berkshire Gas Company). The transaction was announced on February 25, 2015, and proposed a total value of $52.75 per share to UIL, a 25% premium to the previous close. The value represented a 21.1x P/E to UIL’s 2015 EPS guidance of $2.50 per share, and 11.2x EV/2014 EBITDA and 9.8x EV/2015E EBITDA. IBE targets earnings growth of ~6% annually from 2016-2020 and expects to invest over 17 billion euros (88% regulated or long-term contracted activities) during the same time period.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Utilities Fund first quarter 2016 commentary.   


  • Mario Gabelli Comments on Eversource Energy

    Eversource Energy (2.4%) (NYSE:ES) (ES – $58.34 – NYSE) is New England’s largest electric and gas distribution utility and delivery system. ES, formerly known as Northeast Utilities (NU), is the product of the April 2012 merger between Northeast Utilities, headquartered in Hartford, Connecticut, and NSTAR, headquartered in Boston, Massachusetts, creating a premier New England distribution utility. ES serves 3.6 million customers in Connecticut, New Hampshire, and Massachusetts. We consider ES to be one of the better long term growth stories, driven by transmission investment, cost cutting opportunities, and oil-to-gas heat conversions in the Northeast. The company targets a 5%–7% long term earnings growth rate. ES formed a JV with Spectra Energy (SE) and National Grid (NG-LN) (0.1%) to construct Access Northeast, a $3 billion gas pipeline to supply the region’s electric generators with natural gas. Construction is expected to begin in 2017, with an in service date by the winter of 2018. In addition, ES expects its 180-mile, $1.6 billion Northern Pass electric transmission line to be completed in mid-2019, with construction to begin in late-2016/2017 following a final environmental impact statement and New Hampshire siting approval. The company expects further transmission development as aging nuclear and coal facilities are replaced.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Utilities Fund first quarter 2016 commentary.   


  • Mario Gabelli Comments on Edison International

    Edison International (2.4%) (NYSE:EIX) (EIX – $71.89 – NYSE) is one of the nation’s larger regulated electric distribution utilities through Southern California Edison (SCE), serving fourteen million residents (five million customers) in central, coastal, and southern California. Following divestiture of non-regulated businesses and settlement of most outstanding issues related to the closing of the San Onofre Nuclear Generating Station (SONGS) units, we consider EIX to be a relatively low risk high quality utility operating in a constructive regulatory environment. In late 2015, SCE’s 2015-2017 General Rate Case (GRC) was finally decided with higher revenues retroactive to January 1, 2015. EIX targets 7% annual rate base growth based on a 10.45% allowed ROE, a $12 billion 2015-2017 capital program and progressive regulatory principles. The capital program is directed toward replacing, upgrading and modernizing the distribution and transmission system to incorporate renewables, storage, electric vehicle charging stations and various smart grid applications. EIX currently pays an annual dividend of $1.92 per share representing a SCE earnings payout ratio of roughly 47% (using $4.09 per share, midpoint of the 2016 SCE earning guidance range), near the low end of the targeted SCE payout ratio of 45%-55%.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Utilities Fund first quarter 2016 commentary.   


  • Mario Gabelli Comments on Empire District Electric

    Empire District Electric (0.7%) (NYSE:EDE) (EDE – $33.05 – NYSE) On February 9, EDE announced an agreement to be acquired for $34 per share in cash by Algonquin Power & Utilities Corp (AQN). The $34 per share purchase price represents a 21% premium to the previous day’s close and 50% premium to the unaffected share price prior to the December 10, 2015 announcement confirming that EDE was in the early stages of exploring strategic alternatives. The $2.4 billion enterprise value, including assumed debt, represents a 10.9x multiple of our 2017 EBITDA estimate and 21.9x our 2017 earnings estimate of $1.55 per share. The transaction is expected to close in the first quarter of 2017 pending approval of EDE shareholders, and the PUC’s of Arkansas, Kansas, Missouri and Oklahoma, the Federal Communications Commission (the FCC), the Committee on Foreign Investment in the United States and the Federal Energy Regulatory Commission (the FERC). Alogonquin Power & Utilities Corp. is a renewable energy and regulated utility company with an eclectic set of assets, including 35 clean energy facilities netting to 889 MWs of capacity in Canada and seven U.S. states and Liberty Utilities. Liberty is an electric, gas and water utility serving 485,000 customers in ten states. Algonquin will maintain EDE’s headquarters in Joplin, retain all Empire District Electric employees, and place the Empire management team to lead Liberty Utilities' Central U.S. Region.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Utilities Fund first quarter 2016 commentary.   


  • Mario Gabelli Comments on American Electric Power Co. Inc.

    American Electric Power Co. Inc. (NYSE:AEP) (2.3% of net assets as of March 31, 2016) (AEP – $66.40 – NYSE) is one of the nation’s largest electric utilities. It serves more than 5.4 million retail customers in eleven states (Ohio and Texas are the largest), owns approximately 32,000 MW of generating capacity, 40,000 miles of transmission lines (the nation’s largest), and 223,000 miles of distribution lines. AEP is focused on becoming a premier regulated utility, and it plans to invest $13 billion over the 2016-2018 time period in regulated assets, driving 7.3% CAGR in net regulated plant. Management expects 4%-6% annual earnings growth, driven by capital investment and rate recovery, sustainable cost savings and O&M spending discipline. The company continues to transition its generation fleet from coal to more environmentally friendly sources. Some of the growth will come from AEP Transco, a transmission development subsidiary that is expected to grow to $0.87-$0.96 per share by 2019 from $0.39 per AEP share in 2015, driven by a $3.7 billion transmission capital investment plan for 2016-2018. AEP currently pays an annual dividend of $2.24 per share representing a payout ratio of roughly 60% (using $3.70 per share, midpoint of the 2016 earning guidance range), near the low end of the targeted payout ratio of 60%-70%.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Utilities Fund first quarter 2016 commentary.   


  • Mario Gabelli's Gabelli Utilities Fund 1st Quarter Shareholder Commentary

    To Our Shareholders,

      


  • Carl Icahn Boosts Stake in Hertz as Stock Price Declines Sharply

    On June 3, Carl Icahn (Trades, Portfolio) of Icahn Enterprises added 1.54% to his Hertz Global Holdings Inc. (NYSE:HTZ) position at an average price of $9.90 per share. The chairman of the limited partnership holding company currently has 64,693,012 shares of the stock.


    One likely reason why Icahn increased his Hertz position is because the company’s stock price decreased sharply throughout the past two years and is near 52-week lows.

      


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